When the accounts ofConcordInc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period.

The problem asked me to do a adjusting entries and reversing entries.

1.The prepaid insurance account shows a debit of $6,768, representing the cost of a 2-year fire insurance policy dated August 1 of the current year.

2.On November 1, Rent Revenue was credited for $1,656, representing revenue from a subrental for a 3-month period beginning on that date.

3.Purchase of advertising materials for $845during the year was recorded in the Advertising Expense account. On December 31, advertising materials of $305are on hand.

4.Interest of $824has accrued on notes payable. The interest will be paid in January of the next year.